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The Shin-Etsu Group is a global leader in developing sophisticated technologies for the semiconductor industry. Throughout the semiconductor production process, Shin-Etsu technologies support greater integration and production efficiency. Technical Strengths for the Semiconductor Industry Silica and Silicon Metal Simcoa Operations Pty. Ltd. of Australia has a long-standing silica mining concession and produces silicon metal, a main raw material for semiconductor silicon, silicone and synthetic quartz. It provides key support to Shin-Etsu by ensuring a stable, long-term supply of high-quality silicon metal. Silicon Carbide Products The silicon carbide products, of Shinano Electric Refining Co., Ltd., greatly con- tribute to improving precise processing of silicon wafers through their use as sawing materials and abrasives. 300mm Silicon Wafers Shin-Etsu was first in the world to mass produce 300mm silicon wafers in 2001. Shin-Etsu Handotai Co., Ltd., es- tablished defect-free technology for single crystals and high-flatness processing technology for silicon wafers, gaining strong customer trust for its commercial production capabilities and quality technologies. Wafer Containers Group company Shin-Etsu Polymer Co., Ltd., has an excellent track record in front opening shipping boxes (FOSB) and front opening unified boxes (FOUP). Photoresists Shin-Etsu developed the first photoresist for use with the short wavelength excimer laser in 1996, and has become the leading manufacturer in this field. Sales have also begun for trilayer ma- terials used in post-45nm generation refined processes. Pellicles Shin-Etsu supplies high-quality pel- licles for ArF and KrF excimer laser lithography. These products have high light-resistance and good transmission uniformity. In addition, Shin-Etsu has succeeded in the development of super large-size pellicles for the production of liquid crystal display (LCD) panels. Various products developed by Shin-Etsu are indispensable to semiconductor materials and their production processes. Photomask Blanks Photomask blanks are photomask materials used for etching circuit patterns on silicon wafers. In fiscal 2009, Shin-Etsu began com- mercial production of cutting-edge photomask blanks, which are indispensable to the refining of semiconductors. Quartz Glass for Semiconductor Production Processes Wafers are fixed in a boat (right) and placed in a furnace tube made of quartz glass (left) for oxidation, diffusion and CVO processes. The quartz glass products of Shin-Etsu Quartz Products Co., Ltd., meet customers’ needs for high-temperature processes. Silicone-based Thermal Interface Materials Shin-Etsu offers various silicone-based thermal interface materials. These thermally conductive materials fill gaps between heat-generating units like CPUs and heat sinks. Epoxy Molding Compounds Shin-Etsu’s epoxy molding compounds provide ex- cellent reliability and moldability due to the utilization of Shin-Etsu’s own silicone low-stress technology, special filler technology and unique flame retar- dation technology, or “green compound technique.” Silica Silicon metal Polycrystal Single crystal growth Silicon wafer, Epitaxial wafer Wafer containers Pattern formation Oxidation, diffusion, thin film formation Dicing Assembly Plastic molding Device Silica Silicon Metal Synthetic Quartz Photomask Substrates for LSIs Used to transfer circuit patterns to semicon- ductor wafers, these photomask substrates have earned a reputation among customers for outstanding quality and consistency of supply. In recent years, these substrates are also being used as raw materials for pho- tomask blanks. 12 | Shin-Etsu Chemical Co., Ltd. 13 ANNUAL REPORT 2011 |

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The Shin-Etsu Group is a global leader in developing sophisticated technologies for the semiconductor industry. Throughout the semiconductor production process, Shin-Etsu technologies support greater integration and production efficiency.

Technical Strengthsfor the Semiconductor Industry

Silica and Silicon MetalSimcoa Operations Pty. Ltd. of Australia has a long-standing silica mining concession and produces silicon metal, a main raw material for semiconductor silicon, silicone and synthetic quartz. It provides key support to Shin-Etsu by ensuring a stable, long-term supply of high-quality silicon metal.

Silicon Carbide ProductsThe silicon carbide products, of Shinano Electric Refining Co., Ltd., greatly con-tribute to improving precise processing of silicon wafers through their use as sawing materials and abrasives.

300mm Silicon WafersShin-Etsu was first in the world to mass produce 300mm silicon wafers in 2001. Shin-Etsu Handotai Co., Ltd., es-tablished defect-free technology for single crystals and high-flatness processing technology for silicon wafers, gaining strong customer trust for its commercial production capabilities and quality technologies.

Wafer ContainersGroup company Shin-Etsu Polymer Co., Ltd., has an excellent track record in front opening shipping boxes (FOSB) and front opening unified boxes (FOUP).

PhotoresistsShin-Etsu developed the first photoresist for use with the short wavelength excimer laser in 1996, and has become the leading manufacturer in this field. Sales have also begun for trilayer ma-terials used in post-45nm generation refined processes.

PelliclesShin-Etsu supplies high-quality pel-licles for ArF and KrF excimer laser lithography. These products have high light-resistance and good transmission uniformity. In addition, Shin-Etsu has succeeded in the development of super large-size pellicles for the production of liquid crystal display (LCD) panels.

Various products developed by Shin-Etsu are indispensable to semiconductor materialsand their production processes.

Photomask BlanksPhotomask blanks are photomask materials used for etching circuit patterns on silicon wafers. In fiscal 2009, Shin-Etsu began com-mercial production of cutting-edge photomask blanks, which are indispensable to the refining of semiconductors.

Quartz Glass for SemiconductorProduction ProcessesWafers are fixed in a boat (right) and placed in a furnace tube made of quartz glass (left) for oxidation, diffusion and CVO processes. The quartz glass products of Shin-Etsu Quartz Products Co., Ltd., meet customers’ needs for high-temperature processes.

Silicone-based ThermalInterface MaterialsShin-Etsu offers various silicone-based thermal interface materials. These thermally conductive materials fill gaps between heat-generating units like CPUs and heat sinks.

Epoxy Molding CompoundsShin-Etsu’s epoxy molding compounds provide ex-cellent reliability and moldability due to the utilization of Shin-Etsu’s own silicone low-stress technology, special filler technology and unique flame retar-dation technology, or “green compound technique.”

Silica

Silicon metal

Polycrystal

Singlecrystal growth

Silicon wafer,Epitaxial wafer

Wafer containers

PatternformationOxidation, diffusion,

thin film formation

Dicing Assembly

Plastic molding Device

Silica Silicon Metal

Synthetic Quartz Photomask Substrates for LSIsUsed to transfer circuit patterns to semicon-ductor wafers, these photomask substrates have earned a reputation among customers for outstanding quality and consistency of supply. In recent years, these substrates are also being used as raw materials for pho-tomask blanks.

12 | Shin-Etsu Chemical Co., Ltd. 13ANNUAL REPORT 2011 |